I Wish I Had Bought Back Then

My neighborhood is pretty small and houses in these few blocks don’t come on that often. I am one of the recent additions to the neighborhood and while I feel like I got a fair deal based on the timing of my purchase I know most of my neighbors, recognizing the value of this location long before I did, got a much better deal. The MLS shows comps on my street back to 1998; I bought my house in 2008. Sales prices for similar homes during that 10 year period have a $215,000 range. Size and condition differed, of course, but that lowest sale price was move in ready with a master suite, original wood work and updated systems. So, you see where I am going with this. If I had had the sense to buy 10 years ago I would have a substantial amount of equity and a much lower mortgage payment.

This scenario isn’t unique to my few blocks. It’s common all over the city. Here is some data from a couple of well known neighborhoods for that same 10 year period.

A Section of Tower Grove South: Grand to Gustine, Arsenal to Utah Place.

September 1998-September 1999

Number of Sold: 26

Range: 35,900-449,000

Average: $168,42

Median: $149,450

September 2008-September 2009

Number of Sold:36

Range: 55,000-475,500

Average: $219,116

Median: $214,500

Now for an area of Soulard: Russell to Lynch, 13th-7th

September 1998-September 1999

Number of Sold: 20

Range: $68,000-$252,000

Average: $134,663

Median: $126,950

September 08-September 09

Number of Sold:19

Range: $132,000-$560,000

Average: $270,047

Median: $240,000

Ten years ago not everyone saw the value or potential (and some had never even heard of) of those neighborhoods, but by the time the neighborhood was on the up swing it was too late to get those earlier deals.

Lots of people tell me they love Tower Grove; they want a move in ready historic home with wood floors, lots of updates, and have a budget of $150,000. $150,000 is nothing to laugh at. In fact that is what an average first time buyer comes to the table with, but in TGS that’s not going to go that far. So they are either going to have to adjust some priorities, be willing to do some work or expand their search area.

You want a pristinely restored historic home but you can’t afford to buy in Soulard in or Tower Grove?